Outdoor Resort Palm Springs Owners Association Operating Fund Working Capital Policy
Policy Statement
The Controller shall maintain one week to two weeks (2%-4%) of the Operating Fund's current annual budget as working capital for unforseen circumstances.
Working Capital at the end of any fiscal year exceeding 4% of the current annual budget will be realloacated as determined by the Board of Directors in accordance with our Governing Documents and California Civil Code.
Working Capital is defined as Current Assets minus Current Liabilities on the Operating Fund Balance Sheet.
Any recommendations to modify this policy should be reviewed with the General Manager and Controller prior to submission to the Board of Directors for final approval. (See Administative Policies and Procedures).
11/31/2020
11/31/2019
Current Assets Cash
141,064 326,380
300,261 313,292
Receivables
Other Current Assets
80,611
75,663
Total
548,054
689,217
Current Liabilities
Accounts Payable
83,302 54,797 183,431
102,970 69,772 172,188
Accruals (payroll items)
Owners Assessments prepaid Capital Lease Payable Other Current Liabilities
-
42,901
30,518
Total
364,431
375,448
Working Capital
183,623
313,769
2020-21
2019-20
Operating Fund Current Annual Budget
$
5,574,166
$
5,104,189
2% of Operating Budget 4% of Operating Budget
111,483 222,967
102,084 204,168
Actual - Working Capital as a Percentage of Operating Fund Current Annual Budget
3.29%
6.15%
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